I spent December mostly working and the first weeks of January mostly planning but I am glad to be back at the blog.

The post title is self-explanatory and focuses gives some ideas on investment issues to pay attention to in 2012. I will be blogging about some of these issues in depth for the next 4 months (as you may know, this blog ends April 30 of this year). Without further ado,

  1. Work on one aspect of your personal finances this year. Studies show the more diverse your goals, the less likely you will achieve any of them (my review on the book Willpower will be posted this month)
  1. Setting a goal and achieving it are two different concepts. Track your goal religiously and have an accountability partner to help you.
  1. Remember you are ultimately responsible for the outcomes in your life.
  1. Do not forget to work on your human capital. Find ways to increase your earning potential through skill improvement, networking and gaining new experiences.
  1. Returns on the market have always been unpredictable. Focus on tax and costs (commissions or MER): the two factors we truly can control when investing in the market regardless of the economic cycle.
  1. Pay down your debt.  It is unsexy and prudent. This is why you should do it. Personal finance is not supposed to be exciting. What you do with your excess cash is what is supposed to be exciting.
  1. Take anything you read with a grain of salt. The media is in the business of selling ads. Bloggers have their own personal agenda. Read to gain knowledge, not to follow blindly.
  1. The closer you are to the daily pulses of the market, the more volatility it seems. Take a long term view.
  1. Bad times are supposed to happen. Do not let fear paralyze you. As a matter of fact, downtimes are often times of great opportunity in our lives and finances.
  1. Money doesn’t buy happiness. We became a very affluent society and seemingly an unhappier one at the same time. Family and community are riches we often overlook when pursuing the all mighty buck.

Good luck in 2012!

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